SupportThose of us in the construction industry can confirm that we’ve seen noticeable changes in the construction economy since the beginning of 2020. Inflation peaked at 6.5% in 2022 due to staggering supply chains and global economic turbulence.
Keeping adequate stock and having close business relationships in the supply chain is crucial for minimizing delays. Our team at Temporary Power Supply specializes in providing construction sites with essential equipment. We offer top brands such as Marinco, Power Assemblies, and Leviton through our easy-to-use website. Working closely with these Manufacturers allows us to keep inventory on-hand and ready to ship to our customers in a moment’s notice.
Understanding and Predicting the Construction Industry
Without a stable, growing construction industry, we would have debilitating roads and inferior buildings. As of the Summer of 2023, the construction industry is valued at 4.3% of domestic GDP. While that may sound like a small portion, it equates to an overall value of 1.6 trillion USD! The industry employees nearly 8 million jobs or 2.9% of the United States’ entire workforce. In today’s blog, we’ll look into the construction industry’s current market and analyze how its fluctuations can cause a ripple effect for everyday Americans.
The construction industry is split into a multitude of sub-sectors that fall under four main categories- residential, commercial, industrial, and infrastructure. Residential contractors are responsible for building, remodeling, and maintaining housing. Commercial construction includes building and modifying buildings such as office complexes and hospitals. The infrastructure sector creates roads, bridges, and water systems, while industrial contractors craft structures like chemical plants.
While independent industry segments understandably scale at different rates according to Deloitte, the industry experienced an 8% increase in spending during 2021, before experiencing a massive decrease to 3.1% in 2022. This decrease can be chalked up to unfavorable economic shifts such as creeping interest rates, inflation, and lengthened lead times due to supply chain issues. The cost of materials also ballooned and forced profit margins to dwindle.
Throughout 2023, we have finally seen inflation rates start to taper off. The cost of materials are slowly decreasing, which is a green light for new construction. The growth of the industry is expected to hold steady throughout the rest of the year and expand an additional 4% in 2024. This will help to boost the economy and add thousands of jobs to the market.
Scaling The Construction Industry
The benefits of booming construction will trickle down and flow throughout the economy. However, to achieve success, individual projects must first overcome several obstacles. Most Construction projects are on remote sites with no access to electricity. Temporary power systems play an essential role in powering various items such as the trailer on site, power tools, charging stations for lifts, and even welding tools. With rapid scaling projects and tight deadlines looming, it’s important that operations go according to plan.
We offer a selection of gear that can be used to build a complete temporary power system and bridge the power distribution gap between a generator and downstream equipment. Our generator docking stations provide a powerful foundation by quickly connecting and providing performance that you can rely on.
On-site progress will also be halted if the equipment becomes damaged and unusable. Repairs take away time from other essential tasks and workers will have to stay late to catch up on lost time, frustrating workers and draining morale. Breakdowns can also be incredibly expensive, which will eat into profit margins.
We recently launched a new product line of replacement parts such as raw type w generator feeder cable, inline camlock connectors, panel mount cam lock connectors, and 50A 125/250V Arrow Hart pro-grip twist lock plugs and connectors. Temporary Power Supply has warehouses on both the East and West Coasts of the United States, so you can quickly receive your replacement parts whenever a breakdown happens. We even offer expedited shipping if you urgently need to replace a part.
You can begin powering your project today by shopping through our website. If you need help choosing the right equipment or would like to request a free quote, contact us now at [email protected].